On 30 June 2021, an adjusting entry DR: Salaries $15,000 and CR: Salaries payable $15,000 was recorded.

The end of the financial period is 30 June 2021.

In the next accounting period commencing 1 July 2021, the following journal was recorded.

Date Accounts Debit Credit

7 July 2021 Salaries payable 15,000

Salaries expense 30,000

Cash 45,000

Required:

The best explanation that represents the 7 July 2021 journal entry is

Group of answer choices

Salaries expense in the reporting period commencing 1 July 2021 was incurred and paid. The present obligation Salaries payable was paid. Cash outflow reported in Operating Activities amounted to $45,000.

Salaries expense in the reporting period commencing 1 July 2021 was incurred. The present obligation Salaries payable was paid. Cash outflow reported in Operating Activities amounted to $45,000.

Salaries expense in the reporting period commencing 1 July 2021 was incurred and paid. The present obligation Salaries payable was incurred. Cash outflow reported in Operating Activities amounted to $45,000.

Salaries expense in the reporting period commencing 1 July 2021 was incurred and paid. The present obligation Salaries payable was paid. Cash inflow reported in Operating Activities amounted to $45,000.